Executive Summary

Consolidated revenue was $32.0M, down 27.4% year-over-year vs. $44.1M and down 5.3% sequential vs. $33.8M; however, continuing operations revenue rose to $32.0M from $30.9M as CA/NV/IL/FL reopened .
Gross margin compressed to 42% from 53% QoQ due to $1.7M inventory write-downs; retail gross margin held at 55% vs. 57% prior quarter .
Net loss improved to $(9.7)M (including a $32.2M tax benefit) vs. $(68.9)M prior quarter; retail Adjusted EBITDA increased to $7.4M with margin expanding to 23% from 17% .
Management highlighted strong CA same-store momentum (April +11.9% vs. March) and the “best bottom-line result” in company history, with catalysts from reopening and planned store openings in MA and IL .

What Went Well and What Went Wrong

What Went Well

“Additionally, we achieved the best bottom-line result in MedMen’s history… Over the next several quarters we plan to both accelerate our growth and move closer to profitability” — Tom Lynch, CEO; CA same-store sales up 2.3% QoQ and April +11.9% vs. March .
Retail Adjusted EBITDA improved to $7.4M and margin to 23% from 17% prior quarter; retail revenue increased to $37.8M from $34.9M .
Operations recovery: CA retail revenue reached $20.2M; NV revenue +8.1% QoQ; FL +12.8% QoQ; IL Oak Park highest-revenue store; secured Morton Grove site (opening expected 2021) .

What Went Wrong

Company-wide gross margin fell to 42% from 53% due to $1.7M inventory write-downs; consolidated revenue declined sequentially vs. Q1 and Q2 .
Corporate SG&A rose sequentially to $11.0M (would have been roughly flat without increased litigation costs), though down 35.3% YoY .
Balance sheet leverage and negative equity persisted: total liabilities $709.7M vs. assets $487.3M; shareholders’ equity $(222.4)M .

Financial Results

Metric	Q1 2021	Q2 2021	Q3 2021
Revenue ($USD Millions)	$35.6	$33.8	$32.0
EPS - Continuing Operations ($USD)	$(0.06)	$(0.11)	$(0.04)
EPS - Discontinued Operations ($USD)	$(0.01)	$0.00	$0.01
Gross Margin % (Company-wide)	47%	53%	42%
Retail Gross Margin %	54%	57%	55%
SG&A ($USD Millions)	$31.9	$33.8	$29.1
Net Loss ($USD Millions)	$(32.8)	$(68.9)	$(9.7)
Adjusted EBITDA (Continuing Ops) ($USD Millions)	$(11.7)	$(11.7)	$(12.3)
Retail Adjusted EBITDA ($USD Millions)	$6.8	$5.8	$7.4
Retail Adjusted EBITDA Margin %	19%	17%	23%
Corporate SG&A ($USD Millions)	$10.3	$9.2	$11.0

Year-over-Year comparatives:

Metric	Q3 2020	Q3 2021
Revenue ($USD Millions)	$44.1	$32.0
EPS - Continuing Operations ($USD)	$(0.06)	$(0.04)
Net Loss ($USD Millions)	$(52.6)	$(9.7)

Segment and Operating Detail:

Metric	Q1 2021	Q2 2021	Q3 2021
California Retail Revenue ($USD Millions)	$20.7	$19.8	$20.2
Retail Revenue - Total Operations ($USD Millions)	N/A	$34.9	$37.8
Arizona Talking Stick Store Revenue ($USD Millions)	N/A	N/A	$2.2

KPIs:

KPI	Period	Value
CA Same-Store Sales QoQ	Q3 2021	+2.3%
CA April Same-Store vs. March	April 2021	+11.9%
Nevada Revenue Sequential Change	Q2 2021	−13%
Nevada Revenue Sequential Change	Q3 2021	+8.1%
Florida Revenue Sequential Change	Q2 2021	+43%
Florida Revenue Sequential Change	Q3 2021	+12.8%

Estimates vs. Actuals:

Metric	Q3 2021 Consensus	Actual
Revenue ($USD Millions)	N/A (S&P Global consensus unavailable for MMNFF)	$32.0
EPS ($USD)	N/A (S&P Global consensus unavailable for MMNFF)	$(0.04) (cont. ops)

Note: Wall Street consensus via S&P Global was unavailable for MMNFF; comparisons to estimates are not provided.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Massachusetts store openings (Fenway, Newton)	Late Summer 2021	“Expect to open two stores in MA during calendar 2021; provisional adult-use licenses granted”	Fenway expected late summer 2021; Newton progressing	Clarified timeline
Illinois second location (Morton Grove)	Calendar 2021	“Evaluating sites for a second location”	Secured Morton Grove site; expected opening 2021	Increased specificity
Florida store count	End of Calendar 2021	“Expect eight stores open by end of calendar 2021”	Four stores operating; no update to end-2021 target provided	Maintained (implicit)
Revenue/Margins/Tax	N/A	None provided	None provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Reopening and capacity restrictions	Q1: CA retail revenue up 34% QoQ; NV reopened and +192% QoQ; FL expansion . Q2: CA capacity limits at 35%/20%; retail margins improved; NY +38% seq. .	CA restrictions “fell away”; CA same-store +2.3% QoQ; April +11.9% vs. March .	Improving
Corporate SG&A discipline	Q1: Corporate SG&A $10.3M (−29% QoQ; −66% YoY) . Q2: Corporate SG&A $9.2M (−10% QoQ; −66% YoY) .	Corporate SG&A $11.0M; would have been flat ex-litigation; −35.3% YoY .	Mixed (YoY down; QoQ up)
Financing and liquidity	Q1: Deferred ~$32M cash commitments; $20–$25.7M financing commitments; term loan and convertible facilities .	Q2: Additional proceeds under term loan and convertible facilities .	Q3: $18.9M equity private placement; $1M unsecured convertible; $10M senior secured convertible; NY investment largely for deleveraging .
Regulatory/legal	Q2: AZ adult-use initiative noted; NY operations performing .	Q3: Definitive NY investment (loss of control pending regulatory approval); litigation costs increased .	Active; impacts SG&A
Regional tourism trends	Q2: NV hurt by reduced tourism (−13% seq.) .	Q3: NV recovery (+8.1% seq.) .	Improving

Management Commentary

“The past quarter was defined by the reopening of retail stores, accelerated momentum in our turnaround plan and a shift towards growth… Additionally, we achieved the best bottom-line result in MedMen’s history… Over the next several quarters we plan to both accelerate our growth and move closer to profitability…” — Tom Lynch, CEO .
“California began to rebound strongly as capacity restrictions… fell away, with same store sales up 2.3% quarter-over-quarter and April same store sales up 11.9% over March” — Tom Lynch, CEO .
Corporate SG&A would have been roughly flat QoQ but for increased litigation costs; retail Adjusted EBITDA margin reached 23.3% .

Q&A Highlights

The company hosted its Q3 FY21 call on May 11, 2021; transcript was not retrievable due to database inconsistency. The webcast archive is available via the company’s investor site link provided in the press release .
No additional Q&A details can be provided from primary sources within this system.

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for MMNFF during this period; therefore, no beat/miss analysis vs. consensus is provided.
Given reported results (gross margin compression on inventory write-downs; stronger retail EBITDA margin; tax benefit), near-term estimate revisions would likely weigh margin assumptions while acknowledging improving four-wall economics — but quantification is not possible absent consensus data .

Key Takeaways for Investors

CA reopening is a tangible catalyst: CA same-store trends and retail revenue recovery underpin continuing ops revenue resilience despite consolidated declines .
Retail economics improving: Retail Adjusted EBITDA rose to $7.4M and margin to 23%, indicating strengthening four-wall performance .
Gross margin pressure was driven by a one-time inventory write-down ($1.7M), suggesting potential normalization next quarter absent similar charges .
Litigation and legal/regulatory dynamics are non-trivial: sequential corporate SG&A uplift tied to litigation; NY investment (loss of control pending approval) aligns with deleveraging efforts .
Balance sheet risk remains elevated: liabilities exceed assets with negative equity, highlighting dependence on ongoing capital access and execution of deleveraging plans .
Near-term trading implication: stock may react to further reopening updates and store opening milestones (MA Fenway late summer; IL Morton Grove 2021), while margin normalization and litigation developments drive sentiment .
Medium-term thesis: focus on retail, improved store-level profitability, and selective market expansion could move the company closer to profitability if cost discipline and capital structure improvements persist .

Sources: Q3 FY21 press release and attached financial schedules (Form 8‑K, May 11, 2021) ; Q2 FY21 press release (Form 8‑K, Feb 16, 2021) ; Q1 FY21 press release (Form 8‑K, Dec 7, 2020) .

MedMen Enterprises, Inc. (MMNFF)·Q3 2021 Earnings Summary